Thor Explorations (THX) AI Stock Analysis

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Thor Explorations

(THX)

82Outperform

Thor Explorations' strong financial performance, supported by significant revenue growth and effective debt management, is the primary driver of the score. The technical analysis indicates positive momentum, and the stock's undervaluation enhances its attractiveness. Volatility in revenue growth and the absence of dividend yield are minor concerns.

Thor Explorations (THX) vs. S&P 500 (SPY)

Market Cap

C$431.82M

Dividend YieldN/A

Average Volume (3M)364.00K

Price to Earnings (P/E)3.4

Beta (1Y)1.31

Revenue Growth39.36%

EPS Growth746.02%

CountryCA

EmployeesN/A

SectorEnergy

Sector Strength51

IndustryGold

Share Statistics

EPS (TTM)0.19

Shares Outstanding664,334,700

10 Day Avg. Volume230,029

30 Day Avg. Volume363,997

Financial Highlights & Ratios

PEG Ratio0.14

Price to Book (P/B)1.82

Price to Sales (P/S)0.00

P/FCF Ratio6.29

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$0.65

Price Target Upside0.00%

Rating ConsensusModerate Buy

Number of Analyst Covering1

Thor Explorations Business Overview & Revenue Model

Company DescriptionThor Explorations Ltd. (THX) is a mineral exploration company primarily focused on the development and production of gold deposits in West Africa. The company operates the Segilola Gold Project in Nigeria, which is considered one of the most advanced gold projects in the region. Thor Explorations is committed to responsible mining practices and aims to contribute to the economic growth of the communities in which it operates.

How the Company Makes MoneyThor Explorations generates revenue primarily through the extraction and sale of gold from its Segilola Gold Project. The company benefits from the relatively low-cost production environment in Nigeria, which enhances its profitability margins. Thor Explorations sells the extracted gold on the global commodities market, where prices are influenced by factors such as international demand, currency fluctuations, and geopolitical stability. Additionally, the company may form strategic partnerships or joint ventures to expand its mining operations and improve its financial performance. However, the primary source of income remains the sale of gold extracted from its mining operations.

Thor Explorations Financial Statement Overview

Summary

Thor Explorations shows strong financial performance with impressive profit margins and cash flow generation. However, volatility in revenue growth and stable asset levels pose challenges for sustained growth.

Income Statement

Positive

Thor Explorations has shown impressive revenue growth, with Total Revenue increasing from $141.2M in 2023 to $150.4M in the TTM period, a growth rate of 6.5%. The company also boasts strong margins, with a Gross Profit Margin of 52.2% and a Net Profit Margin of 35.8% for the TTM. Both EBIT and EBITDA margins are robust at 42.9% and 63.5%, respectively, indicating efficient operations and cost management. However, the decline in revenue from 2022 to 2023 suggests potential volatility.

Balance Sheet

Positive

The balance sheet shows a healthy equity position, with Stockholders' Equity accounting for 61.3% of Total Assets. The Debt-to-Equity Ratio is low at 0.08, indicating prudent leverage use. Return on Equity is strong at 32.1% for the TTM, showing effective use of equity capital. However, the company’s Total Assets have been relatively stable, suggesting limited asset growth which could be a concern for future expansion.

Cash Flow

Positive

Thor Explorations has demonstrated significant free cash flow growth, with Free Cash Flow increasing from $35.4M in 2023 to $49.2M in the TTM period. The Operating Cash Flow to Net Income Ratio stands at 1.03, indicating strong cash conversion from profits. However, the Free Cash Flow to Net Income Ratio is lower at 0.91, suggesting some capital expenditure absorption of cash flows.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
150.41M	141.25M	165.17M	7.82M	0.00	0.00
	Gross Profit
78.45M	38.68M	57.25M	2.51M	-112.34K	-126.73K
	EBIT
64.57M	23.94M	40.02M	-1.51M	-3.70M	-4.84M
	EBITDA
95.43M	52.22M	85.06M	-1.69M	-3.71M	-4.76M
	Net Income Common Stockholders
53.80M	10.87M	25.40M	-2.51M	-3.87M	-4.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.92M	10.39M	6.69M	1.62M	28.26M	5.40M
	Total Assets
2.96M	259.11M	223.25M	263.22M	141.51M	53.71M
	Total Debt
0.00	14.90M	43.55M	91.56M	20.64M	96.67K
	Net Debt
-18.01K	7.06M	36.86M	89.94M	-7.62M	-5.31M
	Total Liabilities
15.47K	146.92M	136.47M	188.05M	63.59M	1.13M
	Stockholders Equity
2.94M	111.39M	86.78M	75.17M	77.91M	52.58M
Cash Flow		Free Cash Flow
49.19M	35.41M	55.71M	-63.73M	-12.47M	-2.62M
	Operating Cash Flow
55.63M	63.84M	84.39M	-22.36M	27.78M	-2.60M
	Investing Cash Flow
-13.96M	-38.45M	-30.55M	-44.75M	-46.75M	-6.01M
	Financing Cash Flow
-45.00M	-25.07M	-48.43M	37.22M	41.35M	13.69M

Thor Explorations Technical Analysis

Technical Analysis Sentiment

Positive

Last Price0.65

Price Trends

50DMA

0.51

Positive

100DMA

0.43

Positive

200DMA

0.36

Positive

Market Momentum

MACD

0.04

Positive

RSI

64.64

Neutral

STOCH

47.69

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:THX, the sentiment is Positive. The current price of 0.65 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.51, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 47.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:THX.

Thor Explorations Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THX	82 Outperform	C$431.82M	3.40	57.36%	―	39.36%	746.02%
RBX	67 Neutral	C$432.85M	―	-5.29%	―	17.61%	-213.86%
Sector *	56 Neutral	$7.06B	3.68	-4.87%	5.83%	0.28%	-51.94%
RIO	50 Neutral	C$458.75M	―	0.21%	―	―	83.41%
PRB	47 Neutral	C$447.73M	―	-109.44%	―	―	10.27%
FDR	46 Neutral	C$430.77M	―	-14.97%	―	―	-83.38%
RML	25 Underperform	C$449.85M	―	21.44%	―	―	-49.49%

* Energy Sector Average

Performance Comparison

TSE:THX

Thor Explorations

0.62

0.37

148.00%

TSE:PRB

Probe Metals

2.20

0.83

60.58%

TSE:RBX

Robex Resources

3.22

0.54

20.15%

TSE:RIO

Rio2

1.08

0.56

107.69%

TSE:RML

Rusoro Mining

0.73

-0.60

-45.11%

TSE:FDR

Founders Metals

4.53

2.84

168.05%

Thor Explorations Earnings Call Summary

Earnings Call Date:Apr 08, 2025

(Q3-2024)

% Change Since: 62.50%|

Next Earnings Date:Jun 03, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed performance with significant profitability and cash flow achievements despite facing operational and legal challenges. The company's strategic expansion and exploration activities show promise for future growth.

Q3-2024 Updates

Positive Updates

Record Profitability and Cash Position

Despite operational challenges, the company generated revenues of over $40 million, an EBITDA of over $27 million, and a net profit of $17.5 million in Q3. The company transitioned from a net debt position of $2.7 million at the end of June to a net cash position of $2.7 million at the end of September.

Significant Exploration and Expansion

Advancements in the Douta project in Senegal and the acquisition of the Guitry project in Cote d'Ivoire indicate robust exploration efforts. The company aims for a maiden inferred resource of 0.5 million to 1 million ounces by the end of next year in Cote d'Ivoire.

Operational Efficiency and Cost Control

The company maintained an all-in sustaining cost between $800 and $900 per ounce, attributing this to lower-than-budgeted diesel prices and the use of compressed natural gas.

Deleveraging and Dividend Potential

The company is expected to be completely deleveraged from its senior debt by the end of the year, and discussions are ongoing about initiating a dividend policy or share buybacks in early 2025.

Negative Updates

Operational Challenges at Segilola Mine

Q3 faced several operational challenges including a fly-rock incident, late delivery of a liner, and excessive rainfall, leading to reduced production and a lowering of annual guidance to 85,000 ounces.

Tax Allegations in Nigeria

The company is facing tax allegations from the Osun State government in Nigeria, with an alleged liability of approximately $1.9 million. A fact-finding committee has been commissioned to investigate these claims.

Company Guidance

In the Q3 2024 earnings call for Thor Explorations Limited, CEO Olusegun Lawson provided detailed guidance on the company's operations and financial performance. The Segilola Gold Mine in Nigeria faced several operational challenges, including a fly-rock incident, delays in liner delivery affecting mill efficiency, and adverse weather conditions, leading to a revision of the annual gold production guidance to 85,000 ounces. Despite these hurdles, the company reported a profitable quarter with revenues exceeding $40 million, EBITDA of over $27 million, and a net profit of $17.5 million. The company successfully transitioned from a net debt position of $2.7 million at the end of June to a net cash position of $2.7 million by the end of September. Lawson highlighted the company's focus on expanding exploration efforts, notably in Senegal and Cote d'Ivoire, with an exploration budget of approximately $7 million for projects outside Nigeria. The company anticipates maintaining all-in sustaining costs between $800 and $900 per ounce and expects to eliminate its senior debt by the end of the year, enhancing its financial flexibility for future growth initiatives.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.